In the end of May DSW Shoe Warehouse informed its customers that data was stolen from the company's computer for 108 stores which included information on 1.4 million credit card holders and 96,000 check writers for a period from mid-November, 2004 through mid-February 2005.
Now the company published report Р’В«2005 Second Quarter Financial ResultsР’В». Footwear retailer announced that net income in the second quarter is $9.3 million, but $6.5 million are losses associated with the data theft announced in March 2005. Hence data breach costs DWS about 70% of its net income.
It's not the first time when confidential information leakage costs millions. The second quarter financial results of ChoicePoint company showed that theft of private data about 145 000 USA residents had cost $6 million in the second quarter and $5.4 million in the first quarter.
Р’В«The DSW case proves how dangerous data leakage can be once again. Business looses millions in consequence of such incidents, that's why companies should spend hundreds of thousand dollars beforehand to protect confidential digital assets against theftР’В», — commented Denis Zenkin, the Marketing Director of InfoWatch company.
Source: DSW
